DEFENSE LOGISTICS AGENCY HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

October 28, 2015

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE (PRC) MEMBERS

CONTRACT ADMINISTRATION PRC MEMBERS AND FINANCE PRC MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1183, 

Revise Federal Implementation Conventions (IC) 856 (Ship Notice/Manifest), 

DLMS IC 856 (Advance Shipment Notice) and Federal IC 857 (Shipment and 

Billing Notice) to add Final Shipment Indicator and Final Invoice Indicator

(Supply/Contract Administration/Finance)

The attached change to DLM 4000.25, Defense Logistics Management Standards is 

approved for implementation.

Addressees may direct questions to Ms. Samantha Mosser, DLMSO Contract 

Administration Lead, 703-767-5288, DSN 427-5288, or e-mail: Samantha.Mosser@dla.mil. 

Others must contact their Component designated representative available at 

https://www2.dla.mil/j-6/dlmso/CertAccess/SvcPointsPOC/allpoc.asp. 

DONALD C. PIPP

Director

Defense Logistics Management

Standards Office

Attachment

cc:

ODASD (SCI)

WAWF PM
Attachment, ADC 1183

Page 1

ADC 1183

Revise Federal Implementation Convention (IC) 856 (Ship 

Notice/Manifest), DLMS IC 856 (Advance Shipment Notice) and 

Federal IC 857 (Shipment and Billing Notice) to add Final Shipment 

Indicator and Final Invoice Indicator 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Submitting Service/Agency: DPAP PDI, (703) 697-4384

b. Technical POC: WAWF PMO, (703) 697-4452

c. Functional POC: DPAP PDI, (703) 697-4384

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Shipment Notice/Manifest Report, Shipment 

and Billing Notice 

b. Primary/Secondary Functional Process: Contract Administration and Automated

Contract Closeout

3. REFERENCES:

a. iRAPT Requirements (DR_1274), Final Indicators Required

b. Approved DLMS Change (ADC) 1163, Automated Contract Closeout using the 

DLMS 567C and Update Non-Automated Contract Closeout Procedures using the DLMS 567C 

4. Approved CHANGE(S):

a. Brief Overview of Change: Changes made subsequent to the staffing of the 

Proposed DLMS Change are highlighted in green. 

(1) This change adds the Final Shipment Indicator in Ship Notice/Manifest

Report (Federal 856, 4010 Version). It will also affect extracts carrying this field, such as 

Advance Shipment Notice (DLMS 856, Version 4010).

(2) This change adds the Final Invoice Indicator in Shipment and Billing Notice

(Federal 857, Version 4010). It will also revise the Federal Notes in 2/N901/110 for, Code SI, 

Shipper's Identifying Number for Shipment (SID), to indicate that the shipment is not final, and 

Code FS, Final Sequence Number, to include new business rules for final shipment.

b. Background: During analysis of contract closeout eligible data, it was determined 

that a majority of final invoices are NOT marked as final in Wide Area Workflow e-Business 
Attachment, ADC 1183

Page 2

suite, Invoicing, Receipt, Acceptance, and Property Transfer (iRAPT). This prevents the 

Automatic Contract Closeout Process from running for those contracts, limiting the functionality 

of the tool (Reference 3.b.). The iRAPT tool is being modified so the final shipment and final 

invoice indicators in iRAPT, which currently default to ‘N’, will not default to any value and will 

require the document initiator to actively select either ‘N’ or ‘Y’.

(1) The Acquisition workforce has limited access to real-time disbursement data. 

For tracking, identification, and validation, the final invoice indicator is a critical tag for 

managing contract actions ready for closeout. The Acquisition workforce needs improved data 

integrity for reporting of the final invoice.

(2) When applicable, vendors are not consistently and accurately selecting the 

‘Final Invoice’ tag in iRAPT. Inaccurate reporting of the final invoice creates downstream 

challenges to identify unmatched disbursements, unliquidated obligations, and/or unfulfilled 

orders.

(3) Currently, if the payment system is the Mechanization of Contract 

Administration Services (MOCAS) or DLA Enterprise Business System (EBS), or the contract is 

DLA or Defense Contract Management Agency (DCMA) administered, using a ‘Z’ as the 8th

character of the shipment number will designate final shipments, and iRAPT will set the Final 

Shipment Indicator to ‘Y'. For other systems, there is not currently a way to indicate the 

shipment is final. To accommodate systems that do not currently have a way to submit the final 

shipment indicator, the iRAPT 856 will be modified to carry a Final Shipment Indicator in the 

REF Segment. 

(4) The iRAPT 857, based upon the Federal 857 IC, is a combination shipment 

and billing notice prepared by a vendor for transmission to iRAPT, there is no DLMS equivalent

of this transaction. After processing, iRAPT separates the content as appropriate to provide 

separate outgoing transactions formatted using the applicable 810 invoice transaction or 856 

shipment notice transaction.

(5) The WAWF iRAPT team will add the final invoice indicator to the respective 

iRAPT 810 transactions.

c. Approved Change in Detail:

(1) Federal 856, Version 4010, Ship Notice/Manifest (inbound - vendor to 

iRAPT). Add Code FS, Final Sequence Number, to identify Final Shipment Indicator in

2/REF01/150, for use in the Shipment loop (HL03 Code S). Use ‘Y’ or ‘N’ in 2/REF02/150, to 

indicate whether the transaction is a Final Shipment or not a Final Shipment.

(2) DLMS 856, Version 4010 (ASN) (outbound – iRAPT to DoD Activity). Add 

Code FS, Final Sequence Number, to identify Final Shipment Indicator in 2/REF01/150, for use 

in the Shipment loop (HL03 Code S). Use ‘Y’ or ‘N’ in 2/REF02/150, to indicate whether the 

transaction is a Final Shipment or not a Final Shipment.
Attachment, ADC 1183

Page 3

(3) Federal 857, Version 4010, Shipment and Billing Notice (inbound – vendor to 

iRAPT).

(a) Add Federal Note for Code SI, Shipper's Identifying Number for 

Shipment (SID), to indicate that the shipment is not final in 2/N901/110, for use in the Shipment 

loop (HL02 Code S). Enter the Shipment Number in 2/N902/110. If the shipment is final, this 

data element must be used in conjunction with the business rules in Code FS, Final Sequence 

Number. 

(b) Revise Federal Note for Code FS, Final Sequence Number, to indicate

the shipment is final in 2/N901/110, for use in the Shipment loop (HL03 Code S). For MOCAS, 

EBS, or contract is DLA or DCMA administered, enter the Shipment Number in 2/N902/110, 

and the 8th position must be a ‘Z’. For other systems (non MOCAS, EBS, or contract is not 

DLA or DCMA administered), enter the Shipment Number (without the ‘Z’) in 2/N902/110.

This data element must be used in conjunction with the business rules in Code SI, Shipper's 

Identifying Number for Shipment (SID).

(c) Add Code I5, Invoice Identification, to identify Final Invoice Indicator 

in 2/N901/150, for use in the Shipment loop (HL03 Code S). Enter ‘Final’ in 2/N902/110, and 

enter ‘Y’ or ‘N’ in 2/N903/110, to indicate whether the transaction is a Final Invoice or not a 

Final Invoice.

(4) Vendors whose shipments are associated with MOCAS or EBS, or the

contract is DLA or DCMA administered, will continue to use a ‘Z’ as the 8th character of the 

shipment number to designate the final shipment. They will also need to submit the Final 

Shipment Indicator in the iRAPT 856 (REF segment). For these systems, iRAPT will validate 

the format of the shipment number against the Final Shipment Indicator to ensure that the 8th

character of the shipment number contains a ‘Z’ when the Final Shipment Indicator is ‘Y’. If the

validation fails, the vendor will be given an error message. For example, "ERROR: If The Final 

Shipment Indicator is set to 'Y', then the Shipment Number 'SHP1560' must be exactly 8 

characters with the 8th position being a Z for the EBS pay system."

Staffing Note. Components must ensure contractors are aware of this change.

d. Revisions to DLM 4000.25 Manuals:

(1) Modify Federal and DLMS 856 Implementation Conventions (IC) per 

Enclosure 1.

(2) Modify Federal 857 IC per Enclosure 1. 

e. Transaction Flow: No change to existing transaction flow. Vendors will send the 

Final Shipment Indicator information in the iRAPT 856 or the Final Invoice Indicator in the 

iRAPT 857 to iRAPT through the Global Exchange (GEX). GEX will translate the 856 or 857 

into a user defined file (UDF) for input to iRAPT. The Final Shipment Indicator and Final 
Attachment, ADC 1183

Page 4

Invoice Indicator will be perpetuated to outgoing 856 shipment notices and 810 invoice 

transactions, inclusive of the DLMS 856 Advance Shipment Notice. 

f. Alternatives: None.

5. REASON FOR CHANGE: During analysis of contract closeout eligible data, it was 

determined that a majority of final invoices are NOT marked as final in iRAPT. The Final 

Invoice tag defaults to ‘No’ response. Vendors are not accurately and consistently selecting the 

Final Invoice tag 70 percent of the time. When this occurs, the iRAPT workforce must rely upon 

manual verification to determine whether a vendor has received final payment and that the 

contract can be closed-out. This prevents the Automatic Contract Closeout Process from running 

for those contracts, limiting the functionality of the tool.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Allows agencies to take advantage of readily available technological 

capability to streamline operations and reduce cost in our financial management system. 

Reduces the need for individuals to manually determine legality, propriety, validity, and 

accuracy from poor error handling and information sharing. Streamlines operations to ensure 

invoices are authorized, legal, valid, proper, and correct.

b. Disadvantages: None

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: This change will be 

deployed in iRAPT Release 5.8, targeted for November 06-November 08, 2015. 

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: The change reduces the need for individuals to 

manually determine legality, propriety, validity, and accuracy from poor error handling and 

information sharing will reduce long term costs.

9. IMPACT:

a. DLMS Data Elements: This change adds two new DLMS data elements: 

(1) Final Shipment Indicator. The Final Shipment Indicator reflects whether the 

vendor shipment is a final shipment or not final shipment for the submitted procurement 

instrument identification number (PIIN)/supplemental procurement instrument identification 

number (SPIIN)/procurement instrument identifier (PIID).

(2) Final Invoice Indicator. The Final Invoice Indicator reflects whether the 

vendor invoice is a last invoice or not a last invoice for the submitted PIIN/SPIIN/PIID 

combination.

b. Wide Area Workflow (WAWF): Implement DLMS and Federal IC changes to 

iRAPT 856 and 857. 

c. Component Automated Information Systems (AIS):
Attachment, ADC 1183

Page 5

(1) iRAPT will modify the Final Shipment Indicator and Final Invoice Indicator 

in the WAWF eBusiness Suite.

(2) Component applications receiving the DLMS 856 ASN may need to be 

updated to accommodate the new data element identified in this DLMS Change to ensure that 

transactions will not fail when it is provided.

d. Transaction Services: Vendor transactions will continue to be routed through GEX 

and WAWF3-RA channels for translation and transfer to WAWF.

e. Non-DLM 4000.25 Series Publications: The WAWF Program Management Office 

will update the WAWF Guides for 856 and 857 to reflect the changes identified by this DLMS 

Change.

10. PDC Response Table:

Component Response

Air Force Concurs without comment Noted

Army Concurs with PDC as written Noted

Marine Corps Concurs with PDC as written Noted

Navy Concurs with comment:

This change, if approved, would require a 

change to RSupply in order to remain 

compliant for the 856S. PMW-150 would 

have the final determination on the 

disposition of the change subject to 

approval. Currently the only DLMS 

transaction in use in RSupply is the 856S 

Shipping Status; this change would require 

adding the Final Shipment Code to the 

REF02 segment. At this time it is 

unknown whether the activities using 

RSupply process a significant number of 

shipping status transactions against 

contract requisitions.

Noted

DLA Concurs without comment Noted

Transactions Services Concurs without comment Noted

USTRANSCOM Concurs without comment Noted
Enclosure 1, ADC 1183

Page 1

Enclosure 1

Item 

#

Location 856 Ship Notice/Manifest

Federal IC Revisions

Reason

1. 2/REF01/150 Add new Federal Note 2 to existing Code FS in Data 

Element REF01:

FS Final Sequence Number

Federal Note: 1. Use for final shipment indicator (Z) on 

Defense Logistics Management Standards (DLMS) Shipment 

Performance Notices (SPNs). Do not use on underrun 

quantity deliveries when a final line item shipment is 

replaced. Do not use for Defense Contract Management 

Agency Shipment Notices. The final shipment suffix is 

carried in 1/BSN/020 - BSN02 for these transactions.

2. For iRAPT, use in Shipment loop (HL03 Code S) to 

identify Final Shipment Indicator. Enter ‘Y’ in REF02 to 

identify that the transaction is a Final Shipment. Enter ‘N’ 

if the transaction is not final.

Identify Final Shipment 

Indicator to support 

Automated Contract 

Closeout Process

Item 

#

Location 856 Advance Shipment Notice (ASN) 

DLMS IC Revisions

Reason

1. DLMS 

Introductory 

Note

Add PDC 1183 to DLMS Introductory note 9:

- PDC 1183, Revise Federal Implementation Convention 

(IC) 856 (Ship Notice/Manifest), DLMS IC 856 (Advance 

Shipment Notice) and Federal IC 857 (Shipment and 

Billing Notice) to add Final Shipment Indicator and Final 

Invoice Indicator

Identify Final Shipment 

Indicator to support 

Automated Contract 

Closeout Process

2. 2/REF01/150 Add New Code and Federal Note in Data Element REF01:

FS Final Sequence Number

Federal Note: For iRAPT, use in Shipment loop (HL03

Code S) to identify the Final Shipment Indicator. Enter ‘Y’ 

in REF02 to identify that the transaction is a Final 

Shipment. Enter ‘N’ if the transaction is not final. 

Identify Final Shipment 

Indicator to support 

Automated Contract 

Closeout Process

Item 

#

Location 857 Shipment and Billing Notice

Federal IC Revisions

Reason

1. 2/N901/110 Add New Code and Federal Note in Data Element N901:

I5 Invoice Identification

Federal Note: For iRAPT, use in Shipment loop (HL03

Code S) to identify the Final Invoice Indicator. Enter 

‘Final’ in N902, and ‘Y’ in N103 to identify that the 

transaction is a Final Invoice. Enter ‘N’ if the transaction 

is not final.

Identify Final Invoice 

Indicator to support 

Automated Contract 

Closeout Process
Enclosure 1, ADC 1183

Page 2

Item 

#

Location 857 Shipment and Billing Notice

Federal IC Revisions

Reason

2. 2/N901/110 Add Federal Note in Data Element N901, Code SI:

SI Shipper's Identifying Number for Shipment (SID)

For iRAPT, use in the Shipment loop (HL03 Code S), to 

indicate that the shipment is not final in N901. Enter the 

Shipment Number in N902. If the Shipment is final, this 

data element must be used in conjunction with the business 

rules in Code FS, Final Sequence Number.

Support Automated 

Contract Closeout 

Process

3. 2/N901/110 Revise Federal Note in Data Element N901, Code FS:

FS Final Sequence Number

Federal Note: Indicate suffix associated with final 

shipment For iRAPT, the following rules are authorized:

1) If the payment system is MOCAS, EBS, or contract 

is DLA or DCMA administered, use in the 

Shipment loop (HL03 Code S) to indicate that 

shipment is final. Enter the Shipment Number in 

N902, the 8th position must be a ‘Z’.

2) If the payment system is not MOCAS, EBS, or 

contract is not DLA or DCMA administered, use in 

Shipment loop (HL03 Code S) to indicate that the

shipment is final. Enter the Shipment Number

(without the ‘Z’) in N902.

This data element must be used in conjunction with the 

business rules in Code SI, Shipper's Identifying Number for 

Shipment (SID).

Support Automated 

Contract Closeout 

Process